Agriculture And Economic Growth In Uganda (1990-2014)

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ABSTRACT

The purpose of the study was to establish the relationship between agriculture and economic

growth of Uganda in the period between 1990 and 2015. The objectives of the study were;

identifying the trend of agriculture growth, identifying the trend of economic growth of Uganda

and establishing the relationship between agriculture and economic growth of Uganda in the

period between 1990 and 2013. The study was quantitative. Secondary data for Uganda on

agriculture and economic growth in terms of GDP was used in the study. The data were tested

for normality using the Shapiro-Wilk test of normality and multicollinearity using the Variance

Inflation Factor (VIF) of the variables used. The study findings revealed that there was an

increasing trend of agriculture production of Uganda in the period between 1990 and 2013. The

findings further indicated that there was a constant trend of GDP growth of Uganda in the period.

Furthermore, that there was a weak contribution of agriculture towards economic growth of

Uganda in the same period. The R2 value suggested that agriculture accounted for only 43.2 per

cent in the variation of GDP growth of Uganda. The Pearson’s Correlation Coefficient is 0.5686.

This indicates a moderate positive correlation between agriculture and GDP growth rate from

1990 to 2013. The study recommends that effort towards improving agriculture by introducing

modern methods of fanning and focusing on the quality of output, transforming the output so as to expand sales to the international markets; specifically focusing on fishing production at a commercial level. This would serve to gain more share of agriculture in contributing to GDP growth of Uganda.

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